U.S. Dollar Tests New Lows: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Retreats As Traders Prepare For Fed Decision

U.S. Dollar Index retreats as traders react to NY Empire State Manufacturing Index report, which showed that NY Empire State Manufacturing Index increased from -4.7 in August to 11.5 in September.

If U.S. Dollar Index stays below the 100.80 level, it will move towards the next support level at 99.55 – 99.75.

EUR/USD Tests Weekly Highs

EUR/USD continues its attempts to settle above the resistance at 1.1110 – 1.1135 as traders focus on the pullback in Treasury yields. From a big picture point of view, the American currency remains under pressure ahead of the Fed decision, which will be released on Wednesday.

In case EUR/USD manages to settle above the 1.1135 level, it will head towards the next resistance, which is located in the 1.1185 – 1.1200 range.

GBP/USD Attempts To Settle Above 1.3200

GBP/USD is moving higher as traders stay focused on general weakness of the American currency ahead of the Fed decision.

If GBP/USD settles above the 1.3200 level, it will head towards the resistance at 1.3245 – 1.3265.

USD/CAD Gains Some Ground At The Start Of The Week

USD/CAD gains some ground as traders ignore the continuation of rally in the gold markets. Rising oil prices did not provide additional support to Canadian dollar. Interestingly, other commodity-related currencies are moving higher in today’s trading session.

A move above the 1.3620 level will open the way to the test of the next resistance at 1.3700 – 1.3715.

USD/JPY Rebounds Amid Profit-Taking

USD/JPY rebounded from session lows as traders took some profits off the table after the recent pullback.

RSI moved back into the moderate territory, so there is plenty of room to gain downside momentum in case the right catalysts emerge. In case USD/JPY pulls back below the 140.00 level, it will head towards the support at 138.50 – 139.00.

For a look at all of today’s economic events, check out our economic calendar.